Municipal green bonds offer lower yields for environmentally friendly projects.
The article looks at municipal green bonds used for eco-friendly projects due to the lack of a global CO2 pricing system. It compares the yields of green bonds to regular municipal bonds in the U.S. The study used the S&P U.S. Municipal Green Bond Index and S&P U.S. Municipal Bond Index. Results show that green municipal bonds have slightly lower yields than similar regular bonds, indicating a green premium is not confirmed.